The Bank of Canada intends to implement a securities-lending program to support the liquidity of Government of Canada securities by providing a secondary and temporary source of securities to the market. It intends to implement this program on September 30.

The program makes available a portion of the central bank’s portfolio of Government of Canada bonds and bills when there is strong demand for these securities in the market. The program will offer securities held by the Bank of Canada when market pricing moves beyond a specified point. The bank’s intention is to lend securities in a manner consistent with being a secondary source of securities.

The standard terms for participating in these auctions are described in documents available from the bank, which describe in detail the functioning of the program and the responsibilities of participants.